Regulation 11 Objective 1 – distribution of client assets

United Kingdom

(1)

If the administrator thinks it necessary in order to expedite the return of client assets, the administrator may set a bar date for the submission of—

(a)

claims to the beneficial ownership, or other form of ownership, of the client assets; or

(b)

claims of persons in relation to a security interest asserted over, or other entitlement to, those assets.

(2)

Claims under paragraph (1) include claims that are contingent or disputed.

(3)

In setting a bar date, the administrator must allow a reasonable time after notice of the special administration has been published (in accordance with insolvency rules) for persons to be able to calculate and submit their claims.

F1(4)

Subject to paragraph (4A), where the administrator sets a bar date—

(a)

the administrator must return client assets in accordance with the prescribed procedure; but

(b)

no client assets may be returned after the bar date has been set unless the court has given its approval on an application made by the administrator in accordance with the prescribed procedure.

(4A)

The administrator may, at any time after setting a bar date, return client assets without the approval of the court if (and only if)—

(a)

at that time the administrator has not made any application for court approval to return client assets;

(b)

the administrator has identified the person who is beneficially entitled to the assets or has a right to the assets as bailor or otherwise; and

(c)

the assets are not held by the investment bank in a client omnibus account (within the meaning given in regulation 12(9)).

(5)

Where the administrator, after setting a bar date, has returned client assets F2with the approval of the court, if the administrator then receives a late claim of a type described in paragraph (1) in respect of assets that have been returned—

(a)

there shall be no disruption to those client assets that have already been returned;

(b)

the person to whom the assets have been returned acquires good title to them as against the late-claiming claimant,

and insolvency rules shall prescribe how the late claim is to be treated by the administrator.

(6)

The restrictions in paragraph (5) shall not apply where—

(a)

the client assets were returned to a person (“P”) by the administrator in bad faith in which P was complicit; or

(b)

P is later found to have made a false claim to those assets.

(7)

In this regulation, “bar date” means a date by which claims as described in paragraph (1) must be submitted.

(8)

This regulation does not apply to F3client money.

Annotations

Textual amendments

F1: Reg. 11(4)(4A) substituted for reg. 11(4) (6.4.2017) by The Investment Bank (Amendment of Definition) and Special Administration (Amendment) Regulations 2017 (S.I. 2017/443), regs. 1, 10(a) (with reg. 17)
F2: Words in reg. 11(5) inserted (6.4.2017) by The Investment Bank (Amendment of Definition) and Special Administration (Amendment) Regulations 2017 (S.I. 2017/443), regs. 1, 10(b) (with reg. 17)
F3: Words in reg. 11(8) substituted (6.4.2017) by The Investment Bank (Amendment of Definition) and Special Administration (Amendment) Regulations 2017 (S.I. 2017/443), regs. 1, 10(c) (with reg. 17)